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Perrigo buys Rosemont Pharmaceuticals for $283 million in cash

Staff writer |
Perrigo, a developer of OTC and generic prescription pharmaceuticals, has completed the acquisition of UK Rosemont Pharmaceuticals for approximately $283 million in cash.

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Rosemont is a 46 years old specialty and generic prescription pharmaceutical company focused on the manufacturing and marketing of oral liquid formulations. Its current portfolio consists of more than 90 products with diverse product pipeline, relevant favorable demographics and export opportunities. Rosemont's net sales during calendar year 2012 were approximately $60 million with gross and operating margins similar to those of Perrigo's Rx pharmaceuticals segment.

"We continue to focus on expanding our international footprint and view the acquisition of Rosemont as an opportunistic next step given our existing presence in the U.K. Similar to Perrigo's position in the niche U.S. extended topical generic prescription market, Rosemont is the #1 player in the niche specialty U.K. oral liquid formulations market. We are excited to announce the acquisition of Rosemont and welcome its more than 200 employees to the Perrigo family," said Perrigo chairman, president and CEO Joseph C. Papa.

Rosemont is expected to be $0.08 accretive to adjusted EPS for the remainder of fiscal 2013, and approximately $0.04 to $0.07 dilutive to GAAP EPS after the inclusion of estimates for intangible amortization, transaction and integration related expenses.

Including this acquisition, Perrigo now expects fiscal 2013 reported earnings to be between $4.67 and $4.87 per diluted share as compared to $4.18 in fiscal 2012 and fiscal 2013 adjusted earnings to be between $5.53 and $5.73 per diluted share as compared to $4.99 in fiscal 2012.

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